MUMBAI: Standard and Poor’s affirmed its rating on India’s long-term foreign and local currency sovereign credit at the lowest investment-grade level and retained its stable outlook on the economy, it said in a statement on Tuesday.

India’s long-term rating was affirmed at ‘BBB-’ with a stable outlook while the short-term rating was held at ‘A-3’.

“The stable outlook reflects our expectation that India’s economy will recover following the resolution of the COVID-19 pandemic,” analysts at the rating agency wrote.

“And that the country’s strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months”.